Will Bitcoin Price Drop Below $60000?

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Bitcoin investors hoping for a quick recovery may need to be patient. That is the message from Katie Stockton, founder and managing partner of Fairlead Strategies, who appeared on CNBC’s Squawk Box this week.

Bitcoin Is Boring Right Now and That Is the Point

Stockton’s Bitcoin read was measured but clear. She sees the current price action as a prolonged basing phase with support sitting in the $58,000 to $59,000 range, and she expects multiple retests of that level before any sustained move higher becomes possible.

“It’s a cyclical downtrend and that’s the dominant feature on the chart right now,” she said. “I think we can assume there are going to be retests of support, maybe more than one.”

For crypto investors watching for a bottom signal, Stockton said the charts are not there yet. There are no oversold upturns, no breadth extremes and no sentiment readings that would typically confirm a durable low. Her advice was: do not chase brief relief rallies and wait for the weight of evidence before adding exposure aggressively.

At the time of writing, Bitcoin is trading near $70,000 and is up by more than 3% in the last 24 hours.

Why the Macro Picture Matters for Crypto

Bitcoin does not move in isolation and Stockton’s broader market outlook adds important context for crypto traders.

The S&P 500 recovery last week, which clawed back roughly 4% from recent lows, does not look sustainable in her view.  For risk assets including crypto, a continued equity correction and widening credit spreads create an unfavourable backdrop. Stockton added that even a ceasefire in the Strait of Hormuz may not be enough to fully reverse the damage already building in financial markets.

“I think it needs to be more than just reopening the Strait to fix the market at this point.”